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LG announces a $1.7B ramp-up, 1,200 new jobs, at its Michigan EV battery factory

LG Energy Solution is investing $1.7 billion and creating 1,200 jobs at its existing EV battery factory in Holland, Michigan. The expansion of the factory will quintuple its capacity to produce EV battery components.

The company made its announcement yesterday alongside the Michigan Economic Development Corporation and Governor Gretchen Whitmer (D-MI).

LG Energy Solution has been in Holland since 2010, when it built its first EV battery plant in the US, and currently has 1,495 employees in Michigan. The new jobs will pay an average of around $65,000 per year.

The factory, which is northwest of Detroit, will manufacture the company’s new long cell design batteries with improved energy density. The long cell design batteries are expected to advance the driving range of EVs.

The expansion includes the construction of several new facilities on the factory’s existing footprint in Holland. On January 24, WoodTV8 reported:

The company wants to move into the phase 2 expansion of its property at 1 LG Way. The plans call for adding a two-story building to its campus that’s nearly 963,000 square feet. A warehouse, control room, cell test building, administrative office, utility and control rooms and safety facilities are also included in the proposal.

The expansion announcement comes two months after GM announced a $7 billion investment in Michigan. That includes up to $2.5 billion to build Ultium Cell LLC’s third US battery cell plant in Lansing and Delta Township, a joint venture between LG and GM.

LG Energy Solution accounts for more than 20% of the global EV battery market and supplies such EV manufacturers as Tesla, Volkswagen, and GM.

LG Energy Solution is a spin-off of LG Chem, South Korea’s biggest chemical company. LG Corporation is the parent company of LG Chem.

LG Corporation also owns LG Electronics. On February 23, Electrek reported that LG Electronics was pulling out of the global solar panel business, because competition with Chinese rivals’ lower prices has made it hard for LG to compete.

John I. Taylor, Senior Vice President of LG Electronics USA Inc., then said of the decision to pull out of solar to Electrek via email:

This announcement looks ahead as LG concentrates on other high-value products and services like energy storage systems and energy management solutions. These technologies complement LG’s energy-efficient product offerings, from heat pump dryers and water heaters to advanced HVAC solutions to industry-leading Energy Star certified home appliances to name a few. 

Read more: LG Electronics is going to stop manufacturing solar panels – here’s why

Photo: LG Energy Solution

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Avatar for Michelle Lewis Michelle Lewis

Michelle Lewis is a writer and editor on Electrek and an editor on DroneDJ, 9to5Mac, and 9to5Google. She lives in White River Junction, Vermont. She has previously worked for Fast Company, the Guardian, News Deeply, Time, and others. Message Michelle on Twitter or at Check out her personal blog.